Many foreign countries are actively attracting Korean manufacturing companies to establish joint ventures and relocate by offering favorable business environments. In this increasingly competitive landscape, Azerbaijan stands out as a strategic, reliable, and future-oriented partner for Korea.
The investment forum titled “Alat Free Economic Zone: Unlocking Potential for Korean Manufacturing Companies,” held in Seoul on April 30, left a strong impression on me. It reinforced Azerbaijan's appeal as a future-oriented partner for Korea. Hosted by Azerbaijani Ambassador H.E. Mr. Ramin Hasanov and the Alat Free Economic Zone (AFEZ) Authority, the forum introduced Korean stakeholders to one of Azerbaijan’s most ambitious economic initiatives—signaling the country's strategic pivot toward diversification and innovation-driven growth.
The participation of Mr. Valeh Alasgarov, Chairman of the AFEZ Authority, underscored the importance of the event. Drawing keen interest from prominent Korean business leaders and journalists, the forum highlighted the strengthening partnership between Azerbaijan and Korea. The AFEZ, located near the Baku International Sea Trade Port and soon to host a green-concept international airport, is envisioned as a new regional hub for high-value manufacturing, logistics, and export operations. Its strategic position at the intersection of Europe and Asia—paired with streamlined regulations and world-class infrastructure—presents Korean companies with a compelling platform for global expansion.
Since the establishment of diplomatic relations in 1992, Korea and Azerbaijan have nurtured a vibrant and mutually beneficial partnership. Today, Azerbaijan stands as Korea’s largest trade and economic partner in the South Caucasus. More than 80 Korean companies currently operate in the country, spanning sectors such as construction, digital services, advanced manufacturing, and green technologies.
In 2024 alone, bilateral trade approached USD 400 million. Korea ranked 11th among Azerbaijan’s major import partners, with Korean exports including vehicles and industrial equipment, while Azerbaijani exports to Korea featured jet kerosene, optical and medical instruments, and raw materials used in perfumery. Korea is also among the leading sources of foreign direct investment in Azerbaijan’s non-oil sector—underscoring a shared, long-term strategic vision.
This strong economic engagement is supported by a solid legal framework, including bilateral agreements on investment protection and avoidance of double taxation. Institutional platforms such as the Azerbaijan-Korea Joint Commission on Economic Cooperation—set to reconvene this year alongside a Business Forum—offer invaluable opportunities for business-to-business (B2B) engagement, allowing Korean enterprises to explore partnerships, projects, and market access directly.
Beyond the AFEZ, Azerbaijan hosts a network of industrial parks, technology corridors, and agri-business clusters that welcome both large conglomerates and small to medium-sized enterprises. These zones are governed with transparency and supported by efficient, investor-focused administration.
Azerbaijan’s location further enhances its appeal. The Trans-Caspian East-West Middle Corridor—anchored by the Baku-Tbilisi-Kars railway—offers Korean logistics and transport firms a cost-effective trade route linking Central Asia, Turkey, and Europe.
Moreover, large-scale reconstruction efforts in Azerbaijan’s liberated territories, including Garabagh and East Zangazur, are drawing global attention. Korea is among a select group of countries formally invited to participate in developing these regions, which are being transformed through smart city technologies, renewable energy, and sustainable infrastructure. Korean investors enjoy a first-mover advantage in shaping the region’s future.
What distinguishes the AFEZ from other global Free Economic Zones is its comprehensive legal autonomy, efficient business services, and seamless integration with international trade corridors. Drawing from Azerbaijan’s successful oil and gas regulatory model—where investor contracts are upheld as supreme law—the AFEZ benefits from over 80 updated laws that ensure legal clarity and protection for investors.
As Azerbaijan continues its transformation into a diversified and innovation-led economy, it offers Korean businesses not only a market, but a strategic gateway into the wider Eurasian region—anchored by trust, opportunity, and forward-looking cooperation.
In sum, Azerbaijan presents Korean investors with a unique convergence of opportunity, stability, and strategic access—positioning itself as a trusted partner for long-term, high-impact collaboration in Eurasia’s evolving economic landscape.
